Real estate agents along New Hampshire’s seacoast report a marked increase in homebuyers relocating from Massachusetts, driven largely by the state’s tax policies. Since the introduction of Massachusetts’ four percent surtax on income over $1 million in 2022, affluent individuals and families have been seeking residences across the border to benefit from New Hampshire’s lack of income and estate taxes.
Industry professionals at Carey & Giampa Realtors note a significant shift in demand from the Lakes region to the seacoast, with many recent arrivals maintaining employment in Massachusetts. “That’s why we’re starting to see a lot of these people gravitate towards the seacoast: it’s an easy commute down back to Boston,” said Nick Ponte, managing broker at the firm.
Unlike traditional second-home markets such as Cape Cod or the Berkshires, most of these homebuyers are not purchasing vacation properties but are establishing primary residences to change their tax domicile. Jim Giampa, co-owner and broker at Carey & Giampa, highlighted that recent sales in the higher price brackets—homes valued above $2 million—are predominantly full-time residences. He estimates that 70 to 80 percent of these luxury homes serve as primary residences, while below that price threshold, the split between full-time and vacation homes is roughly even.
Some buyers have taken further steps to solidify their relocation, including selling Massachusetts properties outright and even exploring options to move company headquarters to New Hampshire.
Pricing dynamics along the seacoast vary considerably, with real estate expert Leddy providing context: a $1.5 million budget in Stratham, an inland community adjacent to Rye, translates into a newer 2,500-square-foot home on about an acre, whereas in downtown Portsmouth, the same amount buys a smaller 1,600-square-foot, two-bedroom condominium with limited parking. Downtown Portsmouth’s high-end inventory currently sells for approximately $950 per square foot on the low end, with waterfront properties reaching $1,700 to $1,800 per square foot.
On the lower end of the market spectrum, Carey & Giampa recently sold a property near downtown Exeter for around $1 million, which has since declined to approximately $870,000 according to data from New Hampshire Realtors. This marks the first sustained price decrease in about ten years. However, the beach communities tell a different story: Hampton saw its median home price rise nearly 18 percent, from $680,000 to $800,000 over the past year.
Leddy observed that while the real estate market remains strongly tilted toward sellers, inventory constraints linked to historically low mortgage rates are beginning to ease. “It’s still a seller’s market, but it’s not bananas anymore. Well—relatively speaking, it is bananas. But it’s not as bananas as it was,” he said.
Despite rising prices and a tightening market, the proximity of the seacoast to Boston, Lake Winnipesaukee, and a vibrant culinary scene continues to attract newcomers. Portsmouth, in particular, has developed a reputation for its extensive dining options. According to Leddy, “There’s more restaurant seats than there are people in Portsmouth. You can eat out every night of the week and not do a repeat.”
Overall, the seacoast region’s appeal as a residential destination has become widely recognized, with local real estate professionals acknowledging that the area’s previously under-the-radar status has largely faded.